Analytical Hierarchy Process (AHP) for Selecting and Designing a Mini LNG Plant: A Case Study of Batam Indonesia

Author(s):  
Ketut Buda Artana ◽  
Dinariyana Dwi Putranta ◽  
Irfan Syarief Arief ◽  
I MadeAriana

Increase in demand for clean energy is one of the strategic issues in Indonesia nowadays, considering the significant economic growth of the country. A conventional LNG supply chain is not the best solution taking into consideration its high investment. The possibility of using a small scale LNG supply chain concept (Mini LNG) is recently sought by the government and private sectors in Indonesia. It is even more promising when we consider the amounts and number of stranded gas fields in the country. One of the main obstacles to the development plan is the geographical position of Indonesia as an archipelagic country. This paper presents a case study of LNG supply chain model of 10 mmscfd Gas Sales Agreement (GSA) in Batam and its design of LNG transportation model from Batam to Siantan-West Kalimantan [1]. The distance between Batam and Siantan is approximately 392 nautical miles. Two main objectives are covered in this paper. The first one is an implementation of the Analytical Hierarchy Process (AHP) to select the best location for mini LNG plant, and the second one is to design the LNG supply chain model based on optimization approach. The AHP model uses a pairwise comparison of 4 (four) qualitative attributes and 14 (fourteen) sub-attributes. 3 alternatives of location for mini LNG plant are evaluated, namely: Tanjung Uncang, Pemping Island and Janda Berhias Island. A sensitivity analysis by varying the weight of some critical attributes is also conducted to ensure that preferred location is sensitively selected with minimum error. The optimization of the LNG supply chain model is carried out by means of Gradually Reduced Gradient (GRG) methods. The Objective is to attain one design that will minimize investment (cost). Decision variables of the model are LNG plant capacity, storage tank capacity in loading and receiving terminal, vessel size, number of round trip, number of operating vessels, regasification capacity at the receiving terminal, and others.

Humanomics ◽  
2017 ◽  
Vol 33 (2) ◽  
pp. 189-210 ◽  
Author(s):  
Issa Salim Moh’d ◽  
Mustafa Omar Mohammed ◽  
Buerhan Saiti

Purpose This paper aims to identify the appropriate model to address the financial challenges in agricultural sector in Zanzibar. Since the middle of 1960, clove production has continually and significantly decreased because of some problems and challenges that include financial ones. The financial intermediaries such as banks, cooperatives and micro-enterprises provide micro-financing to the farmers with high interest rates along with collateral requirements. The numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed. Design/methodology/approach The authors will review and examine several existing financial models, identify the issues and challenges of the current financial models and propose an appropriate Islamic financing model. Findings The numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed. This study, therefore, proposed a Waqf-Muzara’ah-supply chain model to address the financial challenge. Partnership arrangement is also suggested in the model to mitigate the issues of high interest rates and collateral that constrains the financial ability of the farmers and their agricultural output. Originality/value The contribution of the agricultural sector to the economic development of Zanzibar Islands is considerable. As one of the important agricultural sectors, the clove industry was the economic backbone of the government of Zanzibar. This study is believed to be a pioneering work; hence, it is the first study that investigates empirically the challenges facing the clove industry in Zanzibar.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sujan Piya ◽  
Ahm Shamsuzzoha ◽  
Mohammed Khadem ◽  
Mahmoud Al Kindi

PurposeThe purpose of this paper is to understand the drivers that create complexity in the supply chain and develop a mathematical model to measure the level of supply chain complexity (SCC).Design/methodology/approachThrough extensive literature review, the authors discussed various drivers of SCC. These drivers were classified into five dimensions based on expert opinion. Moreover, a novel hybrid mathematical model was developed by integrating analytical hierarchy process (AHP) and grey relational analysis (GRA) methods to measure the level of SCC. A case study was conducted to demonstrate the applicability of the developed model and analyze the SCC level of the company in the study.FindingsThe authors identified 22 drivers of SCC, which were further clustered into five complexity dimensions. The application of the developed model to the company in the case study showed that the SCC level of the company was 0.44, signifying that there was a considerable scope of improvement in terms of minimizing complexity. The company that serves as the focus of this case study mainly needs improvement in tackling issues concerning government regulation, internal communication and information sharing and company culture.Originality/valueIn this paper, the authors propose a model by integrating AHP and GRA methods that can measure the SCC level based on various complexity drivers. The combination of such methods, considering their ability to convert the inheritance and interdependence of drivers into a single mathematical model, is preferred over other techniques. To the best of the authors' knowledge, this is the first attempt at developing a hybrid multicriteria decision-based model to quantify SCC.


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